Invoking a metaphor from the gold rush, Amplify ETFs’ chief executive officer, Christian Magoon, stated “we believe there’s a ‘pick and axe’ play here, where we’re not just looking to sell the gold, but also the equivalent of the mining equipment. Bitcoin is just one application for blockchain, the best known one, but there will be all kinds of applications, not just cryptocurrencies. We think it is like the internet was 20 years ago.”

The Proposed Funds May Comprise the World’s First Blockchain ETFs

The proposed Reality Shares Nasdaq Blockchain Economy ETF is a passively managed fund offering exposure to companies operating in the distributed ledger technology sphere. According to Reality Shares’ filing with the Securities and Exchange Commission, the fund “is designed to measure the returns of companies that are committing material resources to developing, researching, supporting, innovating or using blockchain technology for their proprietary use or for use by others.”

Founded in 2012, Reality Shares is a San Diego-based investment firm that is “solely focused on dividend growth investing,” and offers a range of alternative ETFs that pinpoint and capitalize on investment in dividend growth.”

In recent weeks, Bank of America Meryll Lynch expressed its belief that the bitcoin market could come to comprise a $1.6 billion USD market cap. During September it was revealed that Toronto-based Evolve Funds had filed a preliminary prospectus for a bitcoin ETF in Canada.

What do you think of the proposed blockchain ETFs? Share your thoughts in the comments section below!

Images courtesy of Shutterstock, Amplify Investments, Reality Shares

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